I do know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

RESOLUTION # 19, DE 2014

Authorizes the state of Bahia to hire external credit operation, with collateral from the Federative Republic of Brazil, worth up to US$ 400,000,000.00 (four hundred million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of Bahia authorized to hire external credit operation, with collateral from the Federative Republic of Brazil, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 400,000,000.00 (four hundred million of U.S. dollars).

Single Paragraph. The resources of the operation are intended for the "Inclusion and Socio-economic Development Program of the State of Bahia 2ª Step (Proinclusion II)".

Art. 2º The credit operation referred to in art. 1º should be carried out under the following conditions:

I-dever: State of Bahia ;

II-credor: International Bank for Reconstruction and Development (Bird) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 400,000,000.00 (four hundred million U.S. dollars) ;

V-modality: variable margin ;

VI-disbursement: in 2014 ;

VII-amortization: in 51 (fifty-one) semi-annual, consecutive and customised installments, winning the first on March 15, 2019, and the latter, on March 15, 2044, in terms of the amortization calendar ;

VIII-interest: while no conversion has been effective, the interest will be calculated on the daily debtor balances based on a reference rate for the loan currency, initially the Liborrate, increased from a variable spread, and may be charged surcharge of 0.5% a.a. (five tenths per cent a year) on the disbursed amount of the loan occurred during the period in which Brazil remains above the exhibition ceiling next to the creditor ;

IX-conversion: the borrower will be able to apply, with the prior annuity of the guarantor, the conversion of currency, interest rate conversion or the establishment of ceilings and bands for interest rate fluctuation, at any time during the term of the contract, the occasion when it will be charged transaction commission, as per the contractual provisions ; and

X-commission in sight: 0.25% (twenty five hundredths per cent) on the value of the loan, to be paid on the date of disbursement with proceeds from the loan itself.

Single Paragraph. The dates of payment of the principal, financial charges and planned disbursements may be changed depending on the date of signing of the loan contract.

Art. 3º It is the Federative Republic of Brazil authorized to grant guarantee to the State of Bahia in the external credit operation referred to in this Resolution.

Single Paragraph. The authorization provided in the caput is conditioned to:

I-conclusion of contract for concession of contragaranties between the State of Bahia and the Union, under the manner of linking the quota of state participation in the Union's fundraiser, according to the established in art. 157 and in the incisos I, paragraph "a", and II of the art. 159 of the Federal Constitution, as well as of the own revenue of the State to which the art refers. 155, also of the Federal Constitution ;

II-proof of the situation of adimation of Bahia's State bonds with the Union and its controlled entities ; and

III-fulfillment of the preconditions to the first disbursement.

Art. 4º The maximum period for the exercise of this authorisation shall be 540 (five hundred and forty) days, counted from the duration of this Resolution.

Art. 5º This Resolution shall enter into force on the date of its publication.

Federal Senate, on July 18, 2014

Senator RENAN CALHEIROS

President of the Federal Senate